FxWirePro- USDCAD Daily Outlook
Ichimoku analysis (4-Hour Chart)
Tenken-Sen- 1.2575
Kijun-Sen- 1.2535
USDCAD continues to trade higher for five days and jumped nearly 250 pips on broad-based US dollar buying. The decline of WTI crude prices below $60 is putting pressure on the Canadian dollar. US real GDP expanded at an annualized rate of 4.3% in Q4 vs a forecast of 4.1%. The number of people who have filed for unemployment has fallen to 684000 last week compared to a forecast of 727000. The US 10-year bond yield cooled off after hitting a fresh multi-year high. DXY is holding well above 92.50 level. Any daily close above 92.70 confirms a bullish continuation.
WTI crude oil tumbled more than 3% today on lockdown extension in Germany and Netherlands. The short-term trend is bearish as long as resistance $62 holds.
Technically, the pair faces near-term resistance at 1.2610 (200- 4H MA). Any indicative break above will take till 1.2660/1.2700/1.2745. The significant support is around 1.2530; an indicative violation below will take to the 1.2500/1.2460/1.2430/1.2360.
Indicator (4 Hour chart)
CAM indicator – Bullish
Directional movement index –Bullish
It is good to buy on dips around 1.2560 with SL around 1.2525 for a TP of 1.2660.
